Mexico infrastructure: Ground rules

The Mexican government has ambitious plans for revamping the country’s infrastructure. But first it must get the investment framework right

By Karen Schwartz

Investors are watching Mexico closely — and with good
reason.

President Enrique Peña Nieto in July announced a
much-anticipated six-year plan to invest four trillion pesos
($300 billion) in the country’s infrastructure.
The ambitious proposal offers a blueprint for developing
projects in road, rail, ports, airports and telecommunications
that are estimated to need some 1.3 trillion pesos in
financing.

The proposal envisages seven hundred billion pesos to revamp
the nation’s telecommunications network in a bid
to make it more competitive — measures which raise the
prospect not only of greater efficiency for the sector but also
of fresh investment. The communications projects include two
national communication satellites, increased broadband coverage
as well as the rollout of digital TV across the country.

The government’s infrastructure investment plan
is also closely linked to a proposed reform of state oil
company, Pemex. Energy reforms put forth by Peña
Nieto’s Institutional...